Morgan Stanley · NYSE:MS
Morgan Stanley — Q4 2024 Earnings Presentation
21 slides from Morgan Stanley's earnings presentation, Jan 16, 2025
Slide 1: Four Pillars of Morgan Stanley: The Integrated Firm
Four Pillars of Morgan Stanley: The Integrated Firm Ted Pick, Chairman and Chief Executive Officer January 16, 2025
Slide 2: Notice
Notice 2 The information provided herein includes certain non-GAAP financial measures. The definition of such measures and/or the reconciliation of such measures to the comparable U.S. GAAP figures are included in this presentation, or in Morgan Stanley's (the ‘Company’) Annual Report on Form 10-K,
Slide 3: Four Pillars of Morgan Stanley: The Integrated Firm
3 The End Notes are an integral part of this Presentation. See slides 17-20 at the back of this presentation for information related to the financial metrics and defined terms in this presentation. Strategy Clear and Consistent Strategy in Support of Clients 1 Culture Rigor, Humility and Partnership
Slide 4: Our Strategy: To Raise, Manage and Allocate Capital for Clients
4 Asset Managers / Asset Owners IndividualsCorporations Our Strategy: To Raise, Manage and Allocate Capital for Clients 1 The End Notes are an integral part of this Presentation. See slides 17-20 at the back of this presentation for information related to the financial metrics and defined terms in t
Slide 5: Culture: Tenured and Aligned for the Integrated Firm's Long-Term Success
5 Cross-Firm Experience Embedded in Leadership (2) Culture: Tenured and Aligned for the Integrated Firm’s Long-Term Success 2 Continuity Across The Firm ~22 Years Firm Operating Committee Firm Management Committee ~23 Years Managing Directors Rigor, Humility, and Partnership Average Length of Servic
Slide 6: Financial Strength: Maintained Strong Capital While Growing the Dividend and Driving Earnings Growth
5.184.73 7.95 5.76 (3) 2018 2023 2024 15.3% 15.2% 15.9% 13.3% 12.9% 13.5% 2022 2023 2024 Consistently Strong Capital Position with Dividend Growth Financial Strength: Maintained Strong Capital While Growing the Dividend and Driving Earnings Growth 3 Step-Change in Earnings Growth 6 Regulatory Requir
Slide 7: Revenues and Earnings Growth Reflects Returns on Investments for Growth and Operating Leverage
Revenues and Earnings Growth Reflects Returns on Investments for Growth and Operating Leverage 4 Investments for Growth Revenue Growth Outpacing Expense Growth 7 29 42 44 2018 2023 2024 40 54 62 2018 2023 2024 14% 5% World-Class Technology and Modernization Expanded Bank Offering Talent Across Busin
Slide 8: Industry Leader Across Wealth & Investment Management
Industry Leader Across Wealth & Investment Management 13 19 22 4 8 7 3 4 4 20 32 34 2018 2023 2024 WM & IM Asset Management WM Net Interest Income WM Transactional WM Other and IM PBI 8 Revenue Growth Resulting from Asset and Share Growth4 6 5 6 5 8 8 9 10 1221 23 28 2018 2023 2024 Strength Across I
Slide 9: Growth with Global Footprint Demonstrating Global Growth and Operating Leverage
367 456 473 2018 2023 2024 9 Growth with Global Footprint Demonstrating Global Growth and Operating Leverage (2) With Efficient Allocation of RWA Growth Firm RWAs ($Bn) (1) 4 In Institutional Securities, Global Footprint and Prudent Capital Management Support Operating Leverage 19% 19% 24% Asia EMEA
Slide 10: Growing Net New Assets With Momentum in Driving Fee-Based Flow
Growing Net New Assets 89 282 252 2018 2023 2024 ~2.5 18 19+ 2018 2023 2024 10 4 With Momentum in Driving Fee-Based FlowExpanding Net New AssetsReaching More Relationships 66 109 123 2018 2023 2024 Net New Assets ($Bn) (2) Core Client Relationships (MM) (1) Fee-Based Flows ($Bn) (3) In Wealth Manage
Slide 11: Advisor-Led Clients Are Enduring
Advisor-Led Clients Are Enduring (1) ~60% Advisor-Led Assets Average Duration of ~21 Years Average Duration of ~2-10 Years ~30% Advisor-Led Assets Average Duration of <2 Years ~10% Advisor-Led Assets 11 …Attract Long Duration Clients Supporting Fee-Based Revenue Growth 4 Supporting Expansion of Fee-
Slide 12: Parametric Leading with Innovation and Scale
4 Parametric Leading with Innovation and Scale Parametric AuM ($Bn) (1) ~250 ~475 ~575 2018 2023 2024 Growth in Fee-Based Revenues AM and Related Fees ($Bn) 12 Alternatives Platform Has More Than Doubled Investable Capital ($Bn) (2) ~100 ~215 ~240 2018 2023 2024 2.5 5.2 5.6 2018 2023 2024 In Investm
Slide 13: Deposits Supporting Client Loans on the Bank
187 346 370 2018 2023 2024 Deposits ($Bn) (1) Deposits Supporting Client Loans on the Bank Opportunities to Grow Assets and Deposits 13 Grow the Deposit Base Invest in Marketing and Technology Support the Integrated Firm Drive Lending Growth With Investments into the Bank Contributing to Growth4 The
Slide 14: Strong Dividend Growth Reflecting Growth in Wealth & Investment Management Fee-based Revenues
10 14 17 2 5 6 13 19 22 2018 2023 2024 14 Strong Dividend Growth Reflecting Growth in Wealth & Investment Management Fee-based Revenues 0.300 0.850 0.925 2018 2023 2024 Wealth Management Investment Management Clear Commitment to Dividend Reflects Growth in Durable Revenues The End Notes are an integ
Slide 15: Raise, Manage and Allocate Capital for Our Clients Across the Integrated Firm
Raise, Manage and Allocate Capital for Our Clients Across the Integrated Firm 15 Future Path: Top Down at ScaleToday: Focused & Selected Collaborative Culture Focus on Top Firmwide Clients Selected Client Data Integrated Integrated Firm Organization and Executive Leadership Proactive Coverage at Sca
Slide 16: Morgan Stanley: Four Pillars of the Integrated Firm Driving Toward Firmwide Goals
16 Morgan Stanley: Four Pillars of the Integrated Firm Driving Toward Firmwide Goals Strategy Culture Financial Strength Growth ISG Wallet Share Durable Share Gains WM Pre-Tax Margin 30% Client Assets $10 Trillion + ROTCE 20% Efficiency Ratio 70% Firmwide Goals (1) The End Notes are an integral part
Slide 17: End Notes
End Notes 17 The Firm’s financial presentations, earnings releases, earnings conference calls, and other communications may include certain metrics, including non-GAAP financial measures, which we believe to be useful to us, investors, analysts and other stakeholders by providing further transparenc
Slide 18: End Notes
Diluted EPS ($) Earnings applicable to Morgan Stanley common shareholders ($MM) Reported Metrics - GAAP 5.18 8,530 Adjustment for Severance costs 0.16 269 Adjustment for Legal expenses 0.14 234 Adjustment for Integration-related expenses 0.14 226 Adjustment for FDIC special assessment 0.13 218 Total
Slide 19: End Notes
End Notes 19 These notes refer to the financial metrics and/or defined terms presented on Slide 8 2. Client Assets represent the sum of the reported WM client assets and IM assets under management (‘AuM’). WM client assets represent those assets for which WM is providing services including financial
Slide 20: End Notes
End Notes 20 These notes refer to the financial metrics and/or defined terms presented on Slide 11 1. Analysis represents tenure of clients that have advisor-led client assets at Morgan Stanley as of 4Q 2024 and excludes those clients associated with financial advisors recruited over the last nine y
Slide 21: Four Pillars of Morgan Stanley: The Integrated Firm
Four Pillars of Morgan Stanley: The Integrated Firm Ted Pick, Chairman and Chief Executive Officer January 16, 2025